Question

Grouper Corporation had 141,600 shares of stock outstanding on January 1, 2017. On May 1, 2017, Grouper issued 68,400 shares. On July 1, Grouper purchased 10,320 treasury shares, which were reissued on October 1. Compute Grouper’s weighted-average number of shares outstanding for 2017. Weighted-average number of shares outstanding

Answer 1

184,620 shares

Step-by-step explanation:

The computation of the weighted-average number of shares outstanding is shown below:

On January 1, 2017 to May 1, 2017

= 141,600 shares × 4 months ÷ 12 months

= 47,200 shares

On May 1, 2017 to July 1, 2017

= 141,600 shares + 68,400 shares × 2 months ÷ 12 months

= 35,000 shares

On July 1, 2017 to October 1, 2017

= 141,600 shares + 68,400 shares - 10,320 shares × 3 months ÷ 12 months

= 49,920 shares

On October 1, 2017 to December 31, 2017

= 141,600 shares + 68,400 shares - 10,320 shares + 10,320 shares × 3 months ÷ 12 months

= 52,500 shares

So, the Weighted-average number of shares outstanding would be

= 47,200 shares + 35,000 shares + 49,920 shares + 52,500 shares

= 184,620 shares